McDonald’s July sales fall on China meat scandal

NEW YORK: McDonald´s suffered a drop in July sales after reports that it was using unsafe meat in China hit sales in Asia, the company said.

Global comparable sales at the US fast-food giant dropped 2.5 percent, with sales in the Asia/Pacific, Middle East and Africa region plummeting 7.3 percent.

McDonald´s July sales in the US dropped 3.2 percent, while European sales rose 0.5 percent.

On July 21 Chinese officials shut the Shanghai Husi Food Co. following a television report alleging the plant mixed out-of-date meat with fresh product that was then supplied to McDonalds. Police later detained five Shanghai Husi officials.

Last week, McDonald´s said it stopped using food from all Chinese plants owned by Shanghai Husi´s parent, US-based OSI Group.

Japanese McDonald´s restaurants also halted the sale of products made with chicken from China.

McDonald´s has apologized for the safety problems and pledged to tighten oversight of food suppliers.

Shares of McDonald´s dropped 0.3 percent to $92.99 in pre-market trade.